Terraform Labs founder Do Kwon, who was arrested by Montenegrin authorities on charges of using forged travel documents in March, has pleaded not guilty to the charges in court. Kwon’s hearing was held in the country’s capital, Podgorica, on Thursday, with the next hearing scheduled for June 16.
The charges against Kwon and fellow Terra executive Han Chang-joon stem from an incident in which Kwon used forged Costa Rican travel documents on a flight to Dubai. Montenegrin law imposes a maximum sentence of five years in prison for using fake documents.
The defendants denied committing a crime and have proposed that they be released on supervised bail. Lawyers for the two Korean nationals proposed bail at 400,000 euros ($437,000) each, with the court set to decide on the proposal.
Kwon’s legal troubles do not end with the Montenegrin case. Following the collapse of his crypto enterprise, Terraform Labs, in May 2022, which wiped out $40 billion from the market, Kwon faces criminal charges in both the US and South Korea. Once legal proceedings in Montenegro are concluded, Kwon faces extradition to one of these countries to face those charges.
The case has drawn significant attention from the cryptocurrency community, as Kwon’s Terraform Labs was once one of the most promising projects in the industry. The company’s collapse has raised questions about the viability of some cryptocurrencies and the potential for fraud in the sector. Kwon’s legal case will be closely watched by industry observers, as it could set a precedent for how governments deal with crypto-related fraud.
Read more:
- Do Kwon Faces Over 100-Year Sentence In US, 40-Year Sentence In Korea
- First Trial Of Do Kwon Scheduled For May 11 In Montenegro Court
- Do Kwon Facing Potential 40-Year Sentence For Terra Luna Coin Fiasco: WSJ